Companies in Thailand this year are required to adopt three new Thai Accounting Standards (TAS) in preparing their financial statements, effective from Jan 1. They are: TAS 12 "Income Taxes"; TAS 20 "Accounting for Government Grants and Disclosure of Government Assistance"; and TAS 21 "The Effects of Changes in Foreign Exchange Rates". All will definitely have a direct impact on many companies.
What will the tax consequences be from these innovative accounting treatments and what does the taxman say? Many people believe that none of these should have any impact on our tax calculation. Is this assumption correct from a tax planning point of view?
If one looks back two years ago when TAS 19 "Employee Benefits" was first introduced, corporate taxpayers have since been required to set aside a reserve for employee benefits by assessing the obligations under actuarial principles and calculating potential liabilities under the employee benefits plan.
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